The city of Toronto is considering taking oil companies to court over the costs of climate change. Several U.S. cities have launched similar lawsuits against producers of fossil fuels. And the western city of Victoria is going to ask a group of municipalities in its province of British Columbia to launch a similar class-action lawsuit.
Campaign director Peter Downing compared Alberta’s situation to an “abusive relationship” adding “We are getting robbed blind on our taxes to send our money to Eastern Canada.”
Premier Doug Ford’s government in Ontario said on Thursday that it was “streamlining and updating” its greenhouse gas emissions program “to reduce unnecessary costs and regulatory burden.”
The federal Liberal government may have overpaid for the Trans Mountain pipeline project by up to $1 billion, the parliamentary budget officer estimates, and there’s a risk its value could decline further if there are any other delays in the building timeline.
So where did The Economist get it wrong? Let’s start with how in its December attack on energy extraction in Canada (“Justin Trudeau’s climate plans are stuck in Alberta’s tar sands”), the magazine claimed Alberta Premier Rachel Notley is “demanding that the federal government speed up construction of a new pipeline to the west coast.” This was in reference to the proposed expansion of the Trans Mountain pipeline.
On January 5, the mayor addressed a large group of protesters, expressing his disapproval of the way the prime minister has treated the oil and gas industry.
Recent reports on a group called CorpEthics exposed how the San Francisco-based organization is fighting against Canada’s energy industry.
What was Canada’s biggest business news story of 2018? According to the pundits at The Canadian Press, it wasn’t the giveaway of Canadian oil to Americans for tens of billions of dollars below world prices, caused by a lack of pipelines from Alberta. It wasn’t the loss of tens of billions more in oil and gas investment to the U.S., because Canada is too hostile to building new projects. It wasn’t the Americanization of Encana, once the largest of all Canadian-headquartered companies. It wasn’t the federal Liberal government’s forced purchase of the Trans Mountain pipeline from Kinder Morgan because the expansion faced insurmountable opposition from the B.C. government and indigenous groups. Nor was it the court decision blocking the federal government from completing that project. Instead, The Canadian Press’s choice of business news story of the year was … the legalization of cannabis.
A decade ago, Canada‘s oil sector was growing so fast it was predicted to become a global energy superpower, but a series of political missteps and formidable environmental activism has created a dysfunctional system requiring OPEC-style government intervention to move its oil to market.
Many in the oil and gas industry are hurting and they’ve been finding large-scale and visible ways to show the federal government how desperately they need to get their product to market.
Over the weekend, former Wildrose leader Brian Jean called for fellow Albertans to join him in an all-out boycott of Quebec products.
The occasion was prompted by a comment from François Legault, the new right-leaning premier of Quebec. At a Montreal premiers’ meeting, Legault shot down any hope for a revival of the Energy East pipeline saying “there’s no social acceptability (for oil) in Quebec.”
Canada’s oil sector, auto sector, and aerospace sector are essential to our economic health and future as a nation.
In a common-sense conclusion, TD Bank economists say Canada’s economy will suffer if the massive oil price discount for Canadian oil continues.
The damage will be worst in Alberta, and overall growth in the country will fall by 0.5%.
Keep in mind, considering that economic growth is already struggling to keep up with inflation and population growth, a 0.5% fall would shift Canada closer to a recession.
The top rival to Alberta’s premier is signalling he doesn’t favour a government-mandated cut in crude oil production as Canadian prices hit a record low, saying he would prefer to see a market-based solution to the problem.
The Canadian crude oil industry has declared a national emergency after prices plunged to record lows.